Currency pair Pound/Dollar GBP/USD continues to move in the framework of a strong fall and a downward channel. At the time of the publication of the forecast, the Pound to the US Dollar is 1.2655. Moving averages indicate a short-term downward trend. At the moment, we should expect an attempt to grow and test the resistance area near the level of 1.2700. Where again we should expect a rebound and the continuation of the fall of the pound against the dollar. The purpose of the downward movement of the currency pair, in the framework of the FOREX forecast for May 24, 2019, is the area at the level of 1.2475.
GBP/USD Forecast Pound Dollar May 24, 2019
In favor of the fall of the currency pair will test the downward trend line on the indicator of relative strength index (RSI). As well as a rebound from the lower boundary of the downward channel, which acts as a strong signal to sell the pair. Cancellation of the option to drop the pair Pound/Dollar will be a strong increase with the closing of quotations above 1.2825. This will indicate a breakdown of the resistance level and continued growth of the Pound/Dollar pair to the area above the level of 1.3125. It is necessary to wait for confirmation of the pair’s fall with the breakdown of the support area and closing below 1.2585.
Among the important news from the UK, which may have an impact on the GBP/USD pair, it is worth highlighting: United Kingdom Retail Sales m/m.
GBP/USD Forecast Pound Dollar May 24, 2019 implies an attempt to test the resistance area near the level of 1.2700. Then the continuation of the fall with the goal below the level of 1.2475. An additional signal in favor of reducing the British Pound will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall will be a strong growth and the breakdown of 1.2825. This will indicate continued growth of the pair with a potential target above the level of 1.3125.